Correlation Between Ashford and Associated Capital
Can any of the company-specific risk be diversified away by investing in both Ashford and Associated Capital at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ashford and Associated Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ashford and Associated Capital Group, you can compare the effects of market volatilities on Ashford and Associated Capital and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Ashford with a short position of Associated Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashford and Associated Capital.
Diversification Opportunities for Ashford and Associated Capital
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ashford and Associated is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Ashford and Associated Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Associated Capital and Ashford is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Ashford are associated (or correlated) with Associated Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Associated Capital has no effect on the direction of Ashford i.e., Ashford and Associated Capital go up and down completely randomly.
Pair Corralation between Ashford and Associated Capital
Given the investment horizon of 90 days Ashford is expected to generate 25.29 times more return on investment than Associated Capital. However, Ashford is 25.29 times more volatile than Associated Capital Group. It trades about 0.21 of its potential returns per unit of risk. Associated Capital Group is currently generating about -0.01 per unit of risk. If you would invest 225.00 in Ashford on January 25, 2024 and sell it today you would earn a total of 255.00 from holding Ashford or generate 113.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Ashford vs. Associated Capital Group
Performance |
Timeline |
Ashford |
Associated Capital |
Ashford and Associated Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ashford and Associated Capital
The main advantage of trading using opposite Ashford and Associated Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashford position performs unexpectedly, Associated Capital can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Associated Capital will offset losses from the drop in Associated Capital's long position.Ashford vs. Investcorp Credit Management | Ashford vs. Monroe Capital Corp | Ashford vs. Allianzgi Convertible Income | Ashford vs. AllianzGI Convertible Income |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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